Question a. Let X be a Bernoulli random variable with P(X = 0) = I — p, P(X = I)= p. Let Y = I — X and Z = XY. (a) (5 points) Fuld P(X = x, Y = y) for x, y, e (0, (b) points) Find P(X = x,Z = z) for […]
Tag Archives: Bernoulli
What can you say about the role played by the probability it in this condition?
Suppose the taxpayer is an expected utility maximizer with strictly increasing Bernoulli utility function u(W), where W is final wealth. Write down the corre-sponding maximization problem. Characterize the optimal solution, x, to the maximization problem in b. Be careful with both bounds, 0 and y. Provide a condition under which x = 0 is a […]
would you be inclined to conclude that returns are normally distributed?
Financial econometrics Ex 3 complete the following set of exercises. From the data provided, select/generate a random sample of 355 companies. From now on, forget about the raw data set, and work only with the companies in this sample. Generate a data series with the same number of observations as the return-data series. Each observation […]
